Severfield on track to deliver forecasted profit in an improving marketplace

Steelwork contractor has announced pre-tax profit of £8.2M for the six-month period ending 30 September 2019, slightly down on the figure for the same period last year.

The company said the results were in line with expectations as revenue was also down to £131.7M from £149.1M in 2018.

Severfield Chief Executive Alan Dunsmore said: “We have made strategic and operational progress in the first half of the year. We were pleased to complete the acquisition of Harry Peers, which brings in new clients, sectors and opportunities as well as continuing organic growth across all our geographies.

“We are pleased to confirm that full year guidance is in line with expectations and with our strong order book, cash generative business and clear growth plans, we remain confident in our future ability to deliver returns for our shareholders.”

The Group’s main activities continue to be the design, fabrication and construction of structural steel for construction projects and more than 80 live projects were worked on during the period in the UK, the Republic of Ireland and continental Europe.

Major projects worked on during the period include 22 Bishopsgate, where work is now complete, and the new Google Headquarters at King’s Cross (both of which are based in London and have total project revenues in excess of £20M), together with other commercial office developments in London and the regions (including One Braham, 80 Fenchurch Street, Farringdon West, Nottingham Unity Square and Manchester 2 New Bailey).

Mr Dunsmore added the company will continue to focus on the market for medium to high-rise residential construction, where it has developed a steel solution in what has traditionally been a concrete-dominated sector.

“We continue to see potential opportunities in an attractive market and, despite making slower progress than originally anticipated due to a longer than expected client gestation period, discussions with a number of interested parties remain ongoing as we look to secure our first order.”